Commission paves the way for heavy financial sanctions against Apple

In a “preliminary opinion”, the European Commission opened the way, Monday June 24, to heavy financial sanctions against Apple. It considers, as a preliminary matter, that its App Store application store does not comply with EU competition rules. “App Store Rules Violate Digital Markets Regulations [DMA] because they prevent app developers from directing consumers to alternative distribution channels for offers and content”concluded Brussels, in this notice published in a press release.

Following this opinion, the American company defended itself from being outside the EU regulatory framework. “Over the past few months, Apple has made a number of changes to comply with DMA requirements (…) We are convinced that our proposals comply with the law [européen] “.
“All developers active in the EU on the App Store have the ability to use the features we have introduced, including the ability to direct users to [un site] Internet to make their purchases »Apple argued.

This opinion constitutes a first under the new competition rules introduced by the DMA and which have become binding since March 7. It follows the opening of an investigation on March 25. Apple now has the possibility of exercising its rights of defense by having access to the file. The American group will be able to respond in writing to the preliminary conclusions. If these were confirmed, the Commission would adopt a final decision of non-compliance by the end of March 2025.

Therefore, Apple could be fined up to 10% of its global turnover, and even later up to 20% in the event of repeated infringement. The large Californian group had a turnover of $383 billion during its annual financial year ending at the end of September 2023.

1.8 billion euros fine for Cupertino

As part of the DMA, Brussels has also given itself the power to dismantle offenders. A weapon of deterrence and last resort. Under this regulation, “companies distributing their applications [avec] the Apple App Store must be able, free of charge, to inform their customers of cheaper alternative purchasing possibilities, be able to direct them to these offers and allow them to make purchases.explained the Commission.

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Brussels believes that this is not the case today, due to the commercial conditions imposed by Apple on application developers. This is an old dispute between the large American group and the Commission, the competition watchdog in the EU. “We are determined to use the DMA’s clear and effective toolbox to quickly bring an end to a saga that has already lasted for too many years”declared the European Digital Commissioner, Thierry Breton.

For similar reasons, the Cupertino group was already fined 1.8 billion euros by the Commission at the beginning of March, following an investigation opened in June 2020 following a complaint from the music streaming platform Spotify.

The World with AFP

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